Sainsbury's Bank didn't take my direct debit and are now charging me

kyazdani

Hi there,

I need some help. I have a loan with Sainsbury's Bank and have a direct debit set up. I recently decided to take Alliance-Leicesters switch over get money back service. You get £100 cash back from Alliance-Leicester when you switch and another £45 from quidco if you go through them.

Anyways they tell you to keep your direct debits open on your old account, which in this case is Lloyds TSB. So I did. My personal loan comes out on the 1st of every month and I checked on it on the 28th and it said that it had been set up at the Alliance-Leicester end I also checked my online banking on Lloyds TSB and it said that was still set up. So I thought I'll not worry it will go out on the 1st from one of them - there was plenty money in both to make the payment. The 1st comes and nothing has gone out so I figure well it will probably go out tomorrow as sometimes direct debits go out a day later than planned.

On the 2nd (day after the day of the direct debit) I get a letter saying we have got your switch over request for your direct debit, unfortunately as it is the 28th we cannot amend this for this months direct debit so can you send us a cheque for your monthly amount.

Because I am aware this is after the date it normally comes out and not wanting to drop into arreas I call them up and ask to pay over the phone with my debit card. They say to me because I am not in arreas I cannot do that but I can pay by bank transfer. So they give me their account and sort and tell me to reference my loan number. So I send the money that day.

I get a call today saying that I am in arreas, so I say the money has been sent and they say they haven't got it. Then they say I've been charged and will be charged everyday until the money is recieved. I say to them I've done nothing wrong so there should be no charges.

They claim that its up to me to make sure that the money is in their account by the 1st of each month. But I don't understand, they sent me the letter on the 29th knowing I wouldn't get it until after the 1st.

In my mind they have had the details to take a payment, I've not cancelled a direct debit and I've called up to make sure I didn't drop into arrears but they are still charging me saying that it is the banks fault.

I've sent a letter to sainsburys bank today to complain. Should I also contact Alliance-Leicester and Lloyds TSB to say why wasn't the money taken out my account?

How do I get these charges cancelled and stop my self from being black listed as a result of a late payment that was not my fault?

immoral_angeluk

Send in an official complaint, in writing, keeping a copy and send it recorded delivery. If you don't get a suitable response within 8 weeks raise it with the FSA.

the_insider

The FSA don't deal with complaints. I think you mean FOS.
But yes, do make a complaint, if the money was in both accounts the direct debit should have gone out of one or the other of them. I doubt you're getting charged every day though, you're probably incurring penalty interest. It might be worth getting them to do a missing payment trace if you sent an online transfer 5 days ago and they've not received it.

kyazdani

Thanks for your replys guys.

How do I contact the FOS if it comes to that?

kyazdani

Hi again,

just been on a phone call that took a good half hour with sainsburys with my complaining my head off. Apparently I've not been charged everyday the £25 and it hasn't effected my credit rating just yet. They said that I shouldn't be charged extra for missing payment but they have now put in a missing payment report quoting my account and sort that the payment came from.

They won't refund me the £25 charge though as they say it is my responsibility to keep the charge, although thats only what collections are telling me. They say I have to take it to alliance and leicester and then complain to them as their switch over service didn't go without a hitch. hmm! Not sure what they will do for me. Sounds like I might get passed between the two companies to complain.

What should I do if Alliance Leicester say no?

BadgerFace_2

Most banks will refund the charges you incur should their switching service not work properly.

kyazdani

Good news guys. Got a call today and they've looked into it properly and concluded there was no way I could have known the direct debit would not be set up in time and the previous cancelled and they are removing the £25 charge and sending details through to credit scoring so it hopefully won't affect my rating.

Thanks for all your help.